• Sun, 25 Aug 2019, 12:29 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Elliptic and MIT's AI Lab say only 2% of bitcoin transactions are illicit

Mon, 05 Aug 2019, 04:24 am UTC

Blockchain analytics startup Elliptic in partnership with researchers at the Massachusetts Institute of Technology (MIT)’s IBM-funded AI Lab has released a public dataset of bitcoin transactions connected to illegal activities.

The study analyzed 203,769 bitcoin node transactions, with a total value of $6 billion. Researchers of the MIT-IBM Watson AI Lab determined if artificial intelligence can assist current anti-money laundering (AML) procedures.

Based on the analysis, only 2% of the analyzed transactions were illicit. Meanwhile, 21% were legal, whereas the remaining 77% of transactions were unclassified.

The researchers are hoping that the new technique will help fight “societally important challenge” of spotting money laundering activities, in a bid to make the financial system “safer and more inclusive.”

This work will contribute to enabling our clients, including cryptocurrency exchanges and financial institutions, to use our software to better identify illicit transactions and meet their anti-money laundering obligations,” Elliptic Chief Scientist and Co-founder Dr. Tom Robinson told The Block.

He added that the current study is applicable not only to Bitcoin but also to other cryptocurrencies such as Ether and even Facebook’s Libra.

The dataset is said to be “the world’s largest set of labeled transaction data publicly available for any cryptocurrency.” Researchers used several machine learning methods including Logistic Regression, Random Forest, Multilayer Perceptrons, and Graph Convolutional Network (GCN) to create the dataset.

Although relatively new, MIT-IBM Watson AI Lab Researcher Mark Weber said they believe that the ability of GCNs “to capture the relational information of these transaction large, complex transaction networks could prove valuable for anti-money laundering.”

The dataset is now available publicly and can be utilized by open-source developers and other researchers to train machine learning algorithms to detect transactions that are legitimate and illegitimate.

Based on our own research we have labeled those transactions made by illicit actors (dark marketplaces, ransomware operators, fraudsters) and those made by legitimate actors (regulated exchanges, merchants, wallet services etc.),” Robinson told Decrypt.

When applied to new data [the software] can pick out any transactions to match these patterns,” he added.

The news follows after new data from Chainalysis, released last month, indicated that as much as $515 million worth of bitcoin was already used to pay for illicit manners in the first half of 2019.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,178.70 (-2.16%)
  • Ethereum (ETH) $191.27 (-1.37%)
  • XRP (XRP) $0.272400 (-1.22%)
  • Bitcoin Cash (BCH) $307.47 (-2.56%)
  • Litecoin (LTC) $73.54 (-2.25%)
  • Bitcoin (BTC) $10,178.70 (-2.16%)
Aug 23, 2019 (Friday)
11:35
Stablecoin project Terra receives funding from HashKey Capital
10:49
Three of the founding members of Libra Association consider backing out: Report
08:55
Overstock's Patrick Byrne steps down as CEO
08:52
Pundi X brings XPOS crypto payments to Venezuela's Traki retail stores
07:22
Blockchain startup Blockstack scores strategic investment from Japan's Recruit Holdings
07:19
BitGo announces support for multi-signature EOS wallet and custody services
06:39
US Treasury blacklists crypto addresses of suspected Chinese fentanyl traffickers
06:14
Chainalysis launches ‘Chainalysis KYT Alerts’ to detect suspicious cryptocurrency activity in real-time
05:13
Cryptocurrencies used to buy fentanyl, other illicit drugs: White House
05:04
Blockchain energy startup Power Ledger extends energy trading trial in Fremantle
03:53
Blockchain accelerator initiatives launched at the University of California campuses
Aug 22, 2019 (Thursday)
13:05
Crypto exchange Coincheck mulls launching IEO Platform
12:46
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
11:53
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
11:42
Sierra Leone launches blockchain-based National Digital Identity Platform
10:43
Blockchain startup Blocko secures $7.4M in Series B+ round from major South Korean financial institutions
09:52
Crypto Technicals: Ethereum Classic ignores crypto space weakness, extends gains to break above 200-DMA
09:16
Former Zaif exchange owner Tech Bureau to discontinue crypto business after completing customer refunds
08:32
Crypto Technicals: XLM/USD bearish trend intact, hits multi-month lows at 0.06542
07:33
Russian firm ICORating settles $270K fine with SEC for concealing ICO touting payments
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft